We report on the evidence from photoluminescence measurements of the relative positions of the localizedd‐levels of the Mn2+ions with respect to the conduction and valence bands of Cd1−xMnxTe. The results indicate that the ground state6Sis approximately 0.8 eV inside the valence band for all compositions up tox=0.7. The first excited state4Gis deep inside the gap, and it represents an energy level that may substantially affect the lifetime and recombination characteristics of the carriers in the Cd1−xMnxTe system.